Awareness of America’s deficit crisis reached a fever pitch today as the final report from the National Commission on Fiscal Responsibility and Reform was released to the public. The Commission released a summary of the report early in November that set off a firestorm of commentary from both Democrats and Republicans on the Commission’s preliminary findings. “The Moment of Truth” was commissioned earlier this year by President Obama and proposes major changes in tax policy, Medicare spending and Social Security. Some of the housing and senior related proposal include:
- Raising the retirement age to 69 by 2075 in conjunction with smaller cost of living adjustments (COLA)
- Reform the Medicare Sustainable Growth Rate for physician payment and require the fix to be offset
- Cap the mortgage-interest deduction to loans less than $500,000 with homeowners receiving no credit from mortgages on a second home
- Establish a global budget for total federal health care costs and limit the growth to GDP plus 1 percent
The report states that as the baby boomers retire and health care costs continue to grow, the deficit will continue to worsen. The Commission’s report states that by 2025, revenue will be able to finance only interest payments, Medicare, Medicaid, and Social Security.
“We can’t cut the deficit only on the backs of senior citizens,” Rep. Jan Schakowsky in an Interview on CNBC.
For the full 59 page document, visit the Deficit Commission’s Report entitled “Moment of Truth”.